Geoff Miller, president of CEWR, called the ruling “a big win for the rate payers.”

But in a telephone interview Monday, CLWSC General Manager Thomas Hodge termed last week's decision “kind of a middle-ground compromise.”

“The coalition got more than I expected and, generally, I accept the ruling, although our attorneys are still reviewing it,” Hodge said.

“There were some complicated issues involved,” he added, “and I doubt we will appeal the ruling but, unfortunately, the ruling will force us to file again for another rate increase.”

A cooperative-water utility organized in 1994, the water company was purchased by San Jose Water Co. in 2006 and renamed Canyon Lake Water Supply Co.

San Jose Water Co. is an investor-owned utility serving the Silicon Valley area near San Francisco.

Hodge said the issues of the case involved the estimated value of CLWSC's capital assets and the rate of return on CLWSC's investment in those assets.

“The TCEQ commission didn't agree with our estimate of the value of the assets, and the administrative law judge rejected the coalition's position,” Hodge said.

“The biggest surprise for us was the rate of return on our investment allowed by the commission.

“It turned out to be 6.5 percent when the typical average rate of return on equity and debt is about 8.5 percent,” he explained. “But, like I said, we can fix that by applying for another rate increase.”

Hodge explained that, because the interim rate increase was 38 percent and the rate approved in the final ruling cut that to 33 percent, CLWSC would have to issue refunds to its customers.

The water company general manager added that, although the proposed 71 percent increase “created some hostility among the water company's customers,” he believed the actual cost of water is still a bargain for local consumers.

“We basically sell water for 1 cent per gallon,” he said. “But the infrastructure required to transport water from the provider to the consumer is expensive.”

Hodge noted CLWSC has invested over $40 million in Comal County for the purchase of the coop utility and subsequent improvements.

“Water service and quality has improved dramatically since CLWSC took over,” the official said. “And the resulting rates are in line with other utilities with similar issues.”

Hodge said the company did not file for a rate increase in the city of Bulverde.

“We serve certain neighborhoods and areas including Bulverde Hills, Oakland Estates and the commercial area south of Hwy. 46 near H-E-B.”

Residents' coalition president Miller said his group spent some $150,000 fighting the original 71 percent rate increase request.

“We had about 1,100 active volunteers,” he said. “So we were an effective tool in giving consumers a voice about the proposed rate increase.”